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Thanks for the memories: baseball veterans' end‐of‐career salaries
Author(s) -
Horowitz Ira,
Zappe Christopher
Publication year - 1998
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/(sici)1099-1468(199809)19:6<377::aid-mde905>3.0.co;2-k
Subject(s) - salary , position (finance) , principal (computer security) , corollary , power (physics) , psychology , inference , labour economics , economics , demographic economics , political science , computer science , law , finance , mathematics , computer security , artificial intelligence , quantum mechanics , pure mathematics , physics
It is well‐established that a baseball player's salary is based on his performance, experience, star status, bargaining power, mobility and his team's ability to pay. This paper focuses on veteran players who are on the brink of retirement and on the determinants of their salaries. It is found that a veteran's end‐of‐career peak salary depends upon how his career performance, that his most recent performance is irrelevant unless he has spent his entire career with one team, and that the average veteran's salary peaks after 9 years in the Majors. A corollary inference is that general managers recognize and reward player performance over the long haul in comparison with others who have played at that player's principal position, and with a nod to how history will evaluate that player. © 1998 John Wiley & Sons, Ltd.